Nonetheless, it still has one of the highest rates of unemployment of any of Germany’s 16 federal states.

Due to Germany’s system of distributing money from wealthier states to poorer ones (Länderfinanzausgleich), Berlin is still being heavily subsidized by other parts of the country.

In 2015, the capital received €3.61 billion in subsidies, the most of any of the German states. The majority of this money came from wealthy Bavaria, which paid €5.45 billion of the total €9.6 billion which rich states gave to poorer ones, ARD reported in March.